You must read previous articles and watch the given chart carefully to
understand this article completely.
17 May 2017: -
On 16 May 2017: FII Net Bought – 858.29 INR Crs: DII Net Sold – INR – 401.89 Crs
So we got the expected and most wanted levels of 9500 on Nifty. This is
definitely historical for Indian market. This was expected from the day it has
crossed 9274. Big question is what is next. Well, I have already quoted
earlier. If global situation remains positive then we have reasons to expect
10000 on Nifty. It is well supported by Fibonacci retrenchment.
Fresh money should be buying stocks. I can still say that we do not
see euphoric buying so far and so it is sign that this rally can last longer
than expected. Use any dip to add long only. Even if pullback comes then also
we have two great support to deal, one is at 9370 and next is 9270.
For today’s session, I am expecting market to open on flat to positive
note. US market futures are down but we should ignore negative cues as market
mood is good. In case if down side comes then use those as opportunity to buy. It
may be possible that global market goes negative and Indian market may remain
firm.
Buying is an easy trade and hence profitable trade. Do not go for
contra deals.
Money flow is still not concerning. Sectoral index is also more or
less in favour of rally although it used to turn critical sometime. Right now,
it has great chance of hitting fresh money in Indian market.
Can we expect reversal? Well, if this happens then it will be least
expected. So far, nothing is suggesting for reversal but caution call is always
alive.
Caution note is clear – first one has to watch for weakness on small
cap and mid cap indices. Before top, there may be the days where mid cap and
small cap indices will be negative and blue-chip index will maintain flat to
positive note. I will look on small cap and mid cap index to compare relative
under performance.
Strategy for Nifty May future
– I was hoping for 9530 and we got this. Technical charts are support for 9600
if it can sustain above 9530. Yes, I am expecting this to happen. Global market
is trading negative and this is only negative factor. Well, if not today then
sooner it will going to happen. Down side can be opportunity to add long. Hold long
as long as 9385-9370 holds. Who knows expiry may surprise you.
BANK NIFTY May future – Fine,
it is coming near to 23000 but I am still unable to see great buying. I am
still hoping for this index to hit 23500. Think and imagine Nifty level at that
time. How will it come? Well, it will be a pleasure to see a short covering
based rally. This is very close to happen. Technical support is at 22700-22500.
This index deserve great attention as next big opportunity.
